American Eagle reports EPS in-line, misses on revs; guides Q4 EPS below consensus
- Reports Q3 (Oct) earnings of $0.48 per share, in-line with the S&P Capital IQ Consensus of $0.48; revenues rose 4.5% year/year to $1 bln vs the $1.02 bln S&P Capital IQ Consensus.
- Consolidated comparable sales increased 8% (vs. high single-digit guidance and +8.4% estimates) following a 3% increase last year. By brand, American Eagle comparable sales increased 5%, building on a 1% increase last year. Aerie's comparable sales increased 32%, following a 19% increase last year, marking the 16th consecutive quarter of double-digit comp growth.
- Gross profit increased 7% to $399 million from gross profit of $375 million last year. The gross margin rate increased 80 basis points to 39.8% of revenue compared to 39.0% last year. Lower markdowns and rent leverage were slightly offset by increased delivery costs.
- Co issues downside guidance for Q4, sees EPS of $0.40-0.42 vs. $0.46 S&P Capital IQ Consensus, based on comparable sales in the positive mid- single digits vs. +3.6% estimates and total revenue growth in the low single digits.
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